Federal Reserve Chair Jerome Powell Confirms He Is Under Criminal Probe; Hits Back At Trump Administration
Powell was swift to reject the allegations, calling them a broader campaign of intimidation by the political powers.
The ongoing tension between the White House and the Federal Reserve marked yet another chapter after Fed Chair Jerome Powell issued a statement on Sunday, stating that the Department of Justice has served the central bank with grand jury subpoenas, threatening him with a criminal indictment, a move he called politically motivated attack on the Fed's independence.
Issuing a statement through Federal Reserve's official website, Powell stated that subpoenas were served on Friday and largely relate to testimony he gave before the Senate Banking Committee last June regarding the renovation of the Fed's historic Washington headquarters, a project amounting to $2.5 billion.
Powell was swift to reject the allegations, calling them a broader campaign of intimidation by the political powers.
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," Powell said.
"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure," he added.
This comes on the back of rising tension between the White House and the central bank, with US President Donald Trump being a frequent critic of Powell, even resorting to insults.
Trump has criticised Powell for keeping interest rates higher than the administration prefers, arguing that the move has stifled the country's economic growth.
The investigation by the DOJ reportedly focuses on whether or not Powell misled Congress about the scope and cost of the renovation project, drawing scrutiny from Republican lawmakers, including Representative Anna Paulina Luna.
Powell, who has served under four administrations, vowed to remain in his post.
"I will continue to do the job the Senate confirmed me to do," he said. "No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration's threats."
The Department of Justice has not yet commented on the specific charges.
